Interesting article about Oil

wanghong

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9 S& x- j  d' QBelow is an Interesting article I found, which says that.....Do not
7 O- O) F0 a4 E3 n) D1 I$ }" _. K& Q4 lexpect much from Crude Oil producers and future is not with the
9 g. a) H  S% C" `0 R" {6 r9 h) V& scompanies producing Jet fuels but Biofuels. Also no wonder if some of
9 g# k5 v/ Q& {0 E5 C& z0 |these oil producer will go bankrupt or out of the business even if
1 e/ E0 _% C, I5 Vcrude prices improves. This implies also to good names such as Shell,
0 K! P4 c7 Z# pEXXON, BG, BP, Cheveron ....xyz.. oils
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5 U3 x( x  w/ cRecently OPEC reduced crude oil production twice over just a few
! C2 R6 v7 A5 {0 {' Q2 Ymonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
% v% w& E# T/ ]# vleast $50.00 per barrel. Today, oil price declined by a record amount.
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1 V# ^# i. J1 |$ e! |1 M! WThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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/ {3 ], Y/ V, L  ^$ m) i& k1. New oil has been found in Canada, Montana, North & South Dakota and
9 q5 ~1 y) I1 O: L' I  s( Sin the ocean near Brazil. Each of these oil fields has more oil than
; O. _! ~  O, @# qArabia.
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: ]. w( S8 t$ @: U. M( x2. New natural gas has been found in Pennsylvania and West Virginia.
3 _1 {, D4 h+ R" j. `2 c& I* Y: N& VThis is the largest find in North America.

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" W7 T$ G" ]) i$ R( b+ {9 P# q3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
# w& M- v/ n+ D$ J4 D8 W# I+ mfuel is being produced from many plants and algae. The production
8 o2 C* p1 a/ d! ^potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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: K1 D* I$ M; \3 z. ^5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
# L' ~; `8 C. }producing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
/ T9 F/ [- ]! X0 Z* |+ x8 M; Aexpected to be built in the future. Much of the energy they produce
will replace oil.

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, {# F# q! c9 ~1 U8 L% z% i, e7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
2 ]8 k  M' ~6 m8 q4 r7 b" c- Fwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
  @. A8 u% `* S$ tfuel is cleaner and performs better than jet fuel.
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; X/ X- j! G1 m! q  G2 I6 {8. Cities and counties throughout the US are selling the rights to
: Y6 C  U) k( b/ z& wcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.


+ p! [. V0 b/ W& F9. Coal is being transformed into a clean burning liquid fuel. The CO2
5 c1 }% Q# {9 N! |( h- i6 \produced as a byproduct is sold to oil companies for injection into
0 y1 i% U$ ?% aoil wells.
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$ K( g" g2 L- L" c. n, x7 j6 U10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

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1 l! g, ]4 w. \- kEach of the above by itself will not make a large difference in the
4 G1 p- B# m  e  P3 f9 Uprice of crude oil but the sum of all of them together is world
" P. c- w7 a/ d) xchanging. The important thing is that OPEC no longer has the ability
( a. D$ c$ J. y8 v3 Q( _; hto control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


6 T4 ^7 P- c; t' N; I! q  Z: mThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only